Save Article

Crunch Bounces Around in Australia

Hit to Banking Firms
Threatens to Spread
To Economy at Large

By

Laura Santini

Updated March 26, 2008 12:01 a.m. ET

As the credit storm batters the banking industry in the U.S. and Europe, rumbles of thunder are being heard Down Under.

Australian banks are facing several challenges: The global credit crunch has dried up interest in Australian securities, closing off access to once-plentiful financing from abroad. Corporate borrowers holding too much debt are...